Foreign Debt

August 24, 1985

LIMA, PERU — Peru will not drop its plan to pay $320 million at most on its foreign debt in the next 12 months even if its credit rating suffers. ''We do not fear being declared value-impaired,'' Prime Minister Luis Alva Castro told the official newspaper El Peruano. Paul Volcker, chairman of the U.S. Federal Reserve Board, has said that Peru's rating, now ''substandard,'' faces review by October. Peru's arrears and payments due for the next year are $5.6 billion. Total foreign debt is $14 billion. U.S. banks have lent $2.2 billion.